Immigrants' Responsiveness to Labor Market Conditions and it's Implications on Regional Disparities: Evidence from Spain

45 Pages Posted: 19 Apr 2005

See all articles by Catalina Amuedo-Dorantes

Catalina Amuedo-Dorantes

San Diego State University - Department of Economics; IZA Institute of Labor Economics

Sara de la Rica

Universidad del Pais Vasco; IZA Institute of Labor Economics

Date Written: April 2005

Abstract

Using data from the Spanish Labor Force Survey (Encuesta de Poblacion Activa) from 1999 through 2004, we explore the role of regional employment opportunities in explaining the increasing immigrant flows of recent years despite the limited internal mobility on the part of natives. Subsequently, we investigate the policy question of whether immigration has helped reduced unemployment rate disparities across Spanish regions by attracting immigrant flows to regions offering better employment opportunities. Our results indicate that immigrants choose to reside in regions with larger employment rates and where their probability of finding a job is higher. In particular, and despite some differences depending on their origin, immigrants appear generally more responsive than their native counterparts to a higher likelihood of informal, self, or indefinite employment. More importantly, insofar as the vast majority of immigrants locate in regions characterized by higher employment rates, immigration contributes to greasing the wheels of the Spanish labor market by narrowing regional unemployment rate disparities.

Keywords: international migration, immigrant workers, immigrant location, immigrant responsiveness, labor market conditions, regional disparities

JEL Classification: J61

Suggested Citation

Amuedo-Dorantes, Catalina and de la Rica, Sara, Immigrants' Responsiveness to Labor Market Conditions and it's Implications on Regional Disparities: Evidence from Spain (April 2005). IZA Discussion Paper No. 1557. Available at SSRN: https://ssrn.com/abstract=702887

Catalina Amuedo-Dorantes

San Diego State University - Department of Economics ( email )

5500 Campanile Drive
San Diego, CA 92182
United States
619-594-1663 (Phone)
619-594-5062 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Sara De la Rica (Contact Author)

Universidad del Pais Vasco ( email )

Barrio Sarriena s/n
Leioa, Bizkaia 48940
Spain

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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